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Most KwaZulu-Natal municipalities that have undergone provincial intervention — some for as long as seven years — because of their poor financial state stemming from mismanagement, corruption, and unauthorised, irregular, fruitless and wasteful expenditure have not cleaned up house, while some collectively owe Eskom more than R1 billion.
As a result of the lack of maintenance of infrastructure, the municipality had faced frequent electricity outages. It had failed to hold councillors accountable for absenteeism, to exercise oversight on management and on conditional grants and to investigate allegations of malfeasance and maladministration against senior managers and leaders of the municipality.
After the intervention, 98% of the municipality’s wards are, in 2023, now functional and the council has “fairly resolved” service delivery related issues, while spending 7% of its budget on operations and maintenance. Mpofana municipality has experienced one of the longest interventions and is still facing a “financial crisis”. Its Eskom debt increased from R36.6 million in 2017 to R414 million in 2023, and it is now facing a crisis based on its unaudited financial statements.
The municipality maintained a qualified audit opinion with persistent financial problems including an unfunded budget, 87% of debtors are above 90 days payment, employee related costs exceed the norm at 42% of budget, and creditors are not paid within 30 days.
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